By LISA MASCARO (Associated Press), STEPHEN GROVES, and ZEKE MULLER
WASHINGTON (AP) — President Joe Biden and House Speaker Kevin McCarthy both said they had a productive debt ceiling discussion late Monday at the White House, but there was no agreement as negotiators strained to raise the nation’s borrowing limit in time to avert a potentially chaotic federal default.
It’s a crucial moment for the Democratic president and the Republican speaker, just 10 days before a looming deadline to raise the debt limit.
As soon as June 1, Treasury Secretary Janel Yellen said in a letter to Congress, “it is highly likely” the government will be unable to pay all the nation’s bills. This unprecedented default could be devastating for Americans and other countries that depend on U.S. financial stability. It would send shockwaves throughout the global economy.
Each side praised the other’s seriousness, but basic differences remained. They disagree over the best way to cut annual budget deficits. Republicans are determined to cut spending while Biden’s team offered to hold spending levels flat. McCarthy wants to tax the wealthy and large companies more, while Biden wants a few taxes raised on them.